Integrated payables is a system that simplifies the payment process that enables businesses to send all of their vendor payments as a single, “online payment file” to their bank. The bank then processes and allocates the payment as per the instructions given by the business.
Integrated Payables Have Benefits
So what are the benefits of adopting integrated payments? Having integrated payables is a great strategy to implement since cash flow management is simplified by merging the entire payment process into one single step.
What’s more, is that a company has full control of its funds and can notify the bank to release transactions.
Another win for businesses is that it prevents fraud. It does so for the following reasons:
- There is “dual control” over-processing files, transaction reviews, and ultimately approval.
- There are matching checks released against checks presented.
- There is also protection for all debit transactions when using Automated Clearing House (ACH) payments.
An integrated payables solution greatly reduces manual labor, which means that using this solution will be more safe, effective, and allow businesses to have easy access to daily reporting, in order to better reconcile payments.
The Features Of A Integrated Payables Solution
With an integrated payables solution, a business benefits by saving on costs since everything is processed via the bank. Processing internally is usually more costly.
Here are more features associated with a reliable integrated payables solution:
- Payments Are Scheduled
Businesses are able to extend their accounts payable through the scheduling of payments to post on their given due date. Organizations can also take advantage of any “early payment discounts” through paying earlier and having an extension on terms. This is always a plus as it brings in more cash flow into the business’s bank account.
- Online Management
A powerful integrated payables solution will also feature a web portal for vendors so that they can view payment and remittance information for both ACH and virtual card payments. When a payment is submitted through the self-service portal, vendors will automatically receive an email notification. They will also have instant access to the payment amount and purpose.
- Increases Cash Flow
Through automation, the payment processing turnaround is significantly reduced. All payments will be managed electronically which means manual processes are virtually eliminated. It also means that checks will post quicker into the bank account. This gives businesses a more accurate view of their current cash flow.
- Gain Time
The AP department is no longer burdened with processing and mailing all of the company’s checks, instead, the bank takes care of it all. The process is completely streamlined by electronic payments. This translates into faster and more efficient payments.
There are no employees required in order to both print and mail the checks. Another benefit is that there are no postage costs. The integrated payments solution offers address cleansing and postal sorting. This greatly reduces any postage costs.
Save Time And Money
COVID-19 has made it abundantly plain that the antiquated, “manual account payables” procedures are largely inadequate and predisposed to fraud. As more companies begin moving away from using “paper” checks and instead adopt an integrated payables solution, not only are they shielding themselves and their customers from fraud, but they greatly improve their efficiency by reducing the physical work to be done.